Linde to build new air separation unit in eastern Germany

Corporate News

Long-term, on-site gas supply agreement with steelworks

New unit will also produce liquid gases for regional market

Investment volume of around EUR 85 million

Munich/Eisenhüttenstadt, 7 October 2014 – Technology company The Linde Group is set to build a new air separation unit in the eastern German town of Eisenhüttenstadt, near Frankfurt an der Oder. Around EUR 85 million will be channelled into the plant, which will supply the ArcelorMittal Eisenhüttenstadt steelworks with oxygen and nitrogen. The two companies recently signed an agreement to this effect. The plant will also supply liquid gases to the regional market. By combining both gaseous and liquid production streams, the new plant will significantly increase the energy efficiency of oxygen generation at the integrated steelworks.

“This major on-site project builds on our long-standing and successful partnership with ArcelorMittal,” explains Professor Dr Aldo Belloni, Member of the Executive Board of Linde AG. “It enables us to synergise the expertise of our Engineering Division with the know-how of our Gases Division, which will be operating the plant once it is completed. It also strengthens our market position as a trusted oxygen supplier to the steel sector.”

Eisenhüttenstadt is currently home to two oxygen generation units. The new plant will replace the older, less efficient facility. Linde’s Engineering Division will be responsible for delivering the turnkey plant. Linde Gas company LiGaPro will operate the plant once it goes on stream, currently planned for 2017.

“This extended partnership with Linde will make oxygen production much more energy efficient,” says Pierre Jacobs, CEO of ArcelorMittal Eisenhüttenstadt. “The increase in oxygen capacity also secures our future supplies and gives us a much greater degree of flexibility in steel production.”

“Energy efficiency was a key factor for us in the design phase, especially in light of rising raw material costs in the region,” elaborates Olaf Reckenhofer, Head of Linde Gas Germany. “An improved energy balance will also contribute to the lowering of carbon dioxide emissions in the region.”

About The Linde Group

In the 2013 financial year, The Linde Group generated revenue of EUR 16.655 bn, making it the largest gases and engineering company in the world with approximately 63,500 employees working in more than 100 countries worldwide. The strategy of The Linde Group is geared towards long-term profitable growth and focuses on the expansion of its international business with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment – in every one of its business areas, regions and locations across the globe. The company is committed to technologies and products that unite the goals of customer value and sustainable development.

With a production volume of around 7 million tonnes crude steel, ArcelorMittal is among the largest steel producer in Germany. Its customers come from the automotive, construction and packaging industry, household appliances also belong to ArcelorMittal's customers in Germany. The group runs four large production sites in the country. These are two fully integrated flat carbon sites in Bremen and Eisenhüttenstadt as well as two long carbon sites in Hamburg and Duisburg. Moreover the group has seven steel service centers and 16 distribution centers in the federal republic. ArcelorMittal employs more than 8,000 people in Germany.

ArcelorMittal is the world's leading steel and mining company, with a presence in more than 60 countries and an industrial footprint in over 20 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks.

Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety and wellbeing of our employees, contractors and the communities in which we operate.

For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. We are actively researching and producing steel-based technologies and solutions that make many of the products and components we use in our everyday lives more energy-efficient.

We are one of the world’s five largest producers of iron ore and metallurgical coal and our mining business is an essential part of our growth strategy. With a geographically diversified portfolio of iron ore and coal assets, we are strategically positioned to serve our network of steel plants and the external global market. While our steel operations are important customers, our supply to the external market is increasing as we grow.

In 2013, ArcelorMittal had revenues of $79.4 billion and crude steel production of 91.2 million tonnes, while iron ore production reached 58 million tonnes.

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).